Dia Met expands diamond exploration hunt to Alberta

Western markets continued a slow slide during the week ended Oct. 20, with the Vancouver Stock Exchange composite index slipping 5.45 points to close at 551.65 and the resource index finishing down 7.39 points to 547.11.

The levels compare with 52-week highs of 680.32 and 580.71 for the composite and resource indices, respectively.

The Alberta Stock Exchange composite index also lost ground on the week, closing off 3.19 points at 871.56.

The presence of anomalous diamond indicator minerals in several drainage basins in western Alberta prompted Dia Met Minerals to apply for diamond exploration permits on more than three million acres of ground in the province. The company also signed a letter of intent with Cameco and Uranerz Exploration and Mining giving the latter two companies the right to earn a 51%

and 25.5% participating interest, respectively, in the ground. The deal with Cameco and Uranerz will give Dia Met a 23.5% carried interest in the holdings. Dia Met finished the week little changed at $18.12. ASE-listed Gwen Resources recently applied for a diamond exploration permit on 23,000 acres of ground 65 miles northeast of Edmonton. The company is reviewing exploration plans to identify drill targets on the property. The issue closed at 18 cents, down a nickel.

Canadian Overseas Exploration is planning an extended sampling program at its marine diamond concession off the coast of Namibia. The project is a joint venture with a South African firm, with Consolidated Diamond Mines holding a 20%

royalty interest on revenues. Fifteen sampling voyages since September, 1991, have yielded 3,988 diamonds, equal to about 1,887 carats of gem quality. With a note of optimism, Canadian Overseas noted production in 1993 will have to be limited to about 9,600 gem-quality carats in accordance with its agreement with Consolidated Diamond Mines. Canadian Overseas closed down 8 cents at 58 cents.

Seine River continued to gain ground during the period, touching a high of $2.30 before settling at $2.10 for a gain of 22 cents. The company recently announced it is arranging a private placement for a total of US$5 million and plans to use the funds

for development of its Plumas underground placer gold project in California, as well as for potential mining and petroleum acquisitions in Latin America. Big Creek Resources released a number of favorable copper-gold-molybdenum intersections from a recently completed drilling program at the Casino property in southern Yukon. Based on 21 drill holes, the average intersection through the supergene and hypogene zones of the deposit measured 479.6 ft. grading 0.39% copper, 0.044% molybdenum and 0.014 oz. gold per ton. Big Creek, which plans to merge with Pacific Sentinel Gold on a 1-for-1-share basis, is earning a 50% interest in the property from Casino Silver Mines. Big Creek is planning an expanded drilling program on the property starting next spring with three drill rigs. Big Creek closed up 8 cents at $2.76 while Pacific Sentinel finished at $2.82 for a gain of 17 cents. Casino Silver lost a nickel at $1.05.

Azco Mining lost some ground after vending a 50% interest in its Suaqui Verde copper-oxide project in

Mexico to Cambior. To earn its interest, Cambior must spend a minimum of US$3.5 million on the property and complete a bankable feasibility study. Azco finished at $2.40, down 20 cents.

Additional high-grade intersections from the Prairie Creek property in the Northwest Territories did little to help project owner San Andreas Resources. The drilling included a 45-ft. intersection grading 7.33% lead, 16.7% zinc and 2.6 oz. silver per ton. San Andreas lost a dime to close at $3.10. Continuing mining and milling operations at the Goldstream mine near Revelstoke, B.C., enabled 50% owner Goldnev Resources to report net income for the six months ended Sept. 30 of $1.76 million (about 16 cents per share). The issue finished the week up 8 cents at 48 cents.